Cannabis Federal Legalization And Cannabis Stocks for 2022

Cannabis Federal Legalization is moving forward in 2022 and I wanted to lay out what to expect for cannabis federal legalization and what that means for cannabis investments and cannabis stocks.  The House of Representatives is in the process of passing the MORE Act and has already pushed through The SAFE Banking Act some six times.  Now, it is a matter of Senator Chuck Schumer to make good on his statement from January whereupon he stated: “In the coming weeks, we’re ramping up our outreach—and we expect to introduce final legislation. Our goal is to do it in April,” Schumer said at the New York event.

On Friday, March 25th, the House of Representatives stated they were going to vote on the MORE Act one more time.  The MORE Act is set to go to the full floor of the House of Representatives on the week of March 28th.  Cannabis stocks moved significantly higher on the news.

I wanted to outline my thoughts of what happens next with cannabis federal legalization, and of course cannabis stocks and cannabis investments.

Bi-Partisan Support for Cannabis Federal Legalization

There is plenty of support for cannabis federal legalization in both chambers of Congress and both parties.  This is something that I have been following very closely over the past several months.  I had never expected Congress to enter into session in January 2021 and immediately pass legislation.  Instead, my expectations were that cannabis federal legalization would occur closer to the mid-term elections in 2022.  This is looking to be the correct plan that Congress is playing.

“The only place cannabis is controversial is in Washington D.C.”, so says Representative Mace  (Republican, South Carolina) who introduced a bill on November 14th entitled “The States Reform Act” to federal legalization of cannabis on the Federal level.  That bill has not gained much traction since its introduction, least of with in the financial markets.  Also, there was the SAFE Banking Act that was tagged onto the NDAA (National Defense Authorization Act) in the House of Representatives, passed there, but was stripped out of the Senate version.  There were other attempts to decriminalize marijuana on the Federal level throughout 2021.

Over the weekend of December 18th, the Bi-Partisan Cannabis Caucus to Congress (Yes, there is one) put together a memo outlining their goals for 2022.  In this, they stated their goals and objectives for legalization of marijuana in the coming year.  70% of Americans want legalization of marijuana.  This is from Gallup Polls.  And as Representative Mace points out, the disparity of the several states having so many different laws should push the Federal government to updating its own laws that allow for this.

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The Blue Wave & Cannabis Federal Legalization

Cannabis Federal Legalization for 2022 with legislation moving through CongressThere was a big move in cannabis stocks in November 2020 and then again in January 2021.  This was because of the so-called Blue Wave that would usher in federal legalization of marijuana.  But, since then cannabis stocks have largely been sliding lower and lower.  This is because for one reason, cannabis legalization has not occurred.

My thinking on this is that Federal legalization of cannabis is going to happen, not if.  And, with the momentum, this memo could be the outline of what is likely to happen.  The memo states they are going to introduce something into almost every single committee in Congress and put together a broad, and comprehensive bill for legalization of cannabis.

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$18B All-Cash Business & The Feds

Cannabis Stocks & Federal Marijuana Legalization and cannabis investments are boomingIf there is one thing I know about the Feds, they hate cash.  They cannot follow it.  So, one important thing to keep in mind is that passing this Federal legalization of weed legislation would allow for having all of these businesses throughout the United States to utilize banking.  Feds will get what they really care about: Taxation and the ability to see where all of that money is.  After all, wasn’t the war on drugs really about things like this?  The Feds hate cash simply because they cannot watch it.  Don’t believe me?  Go to your bank and try and withdraw or deposit $10K.  hahahahaha… good luck.

Timing Cannabis Federal Legalization

Cannabis Stocks & Federal Marijuana Legalization and cannabis investments are boomingThe timing on this would be optimal for federal legalization of cannabis.  2022 is an election year.  The Blues will want to show voters they accomplished something comprehensive.  I wonder is it possible and more likely that the Reds will trump the blues at this point?

Truth is, federal legalization of cannabis is mostly a certainty, not a possibility.  Putting together comprehensive legislation will allow for the United States to remain competitive in research & development of pharmaceutical technology derived by cannabis, help with resolution of PTSD issues with military members, as well as generally bring laws in line with the general trend of the people of the United States.

I am looking for this outlay of events: introduction of bills to the committees throughout the beginning of the year.  Then a vote on the matter in late spring, reconciliation and then passage in early summer.

The stock market and cannabis stocks will very likely move in accordance with this momentum.

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How to play Cannabis Stocks & Cannabis Federal Legalization

From my perspective, there are many who are disgruntled with the speed at which cannabis Federal Legalization is taking place.  In fact, it may be that so many are sitting on their hands that the entire market may be caught off guard.  But, it is my contention that cannabis federal legalization will occur on some level this year, 2022.



As we can see, there are moves in the right direction with cannabis federal legalization.  The House of Representatives has passed a version already of cannabis federal legalization.  From here, the Senate is expected to move forward with its own version shortly.

Next?  Something will occur shortly for cannabis federal legalization.  Banking is a big deal for the Feds.  They will want that to occur.

Not a one-way road higher

I am not expecting that when cannabis federal legalization occurs that all cannabis stocks will head higher i a straight line.  Instead, after any kind of surge, I am expecting that cannabis stocks will come back down.  Then, it is up-listing to Nasdaq that everyone will be awaiting. That is when real money will start to move in.  That is when cannabis stocks will see serious support.

5 thoughts on “Cannabis Federal Legalization And Cannabis Stocks for 2022

  1. @cannabis-investing @awesame I think the process of pushing through legislation is a process and we will see it play out.  Remember, POTUS was a Senator for many years and he knows everyone there.  They will do what they need to do to get it pushed through. 

    I think all of the “attempts” may have been nothing more than to drop hints to the people of the United States that this is going to happen.  If enough of these hints are dropped the attitude could turn to “It’s about time”.  

    This is the year and getting closer and closer to mid-terms is the move to expect.  Keep your powder kegs dry because this will be big.  

  2. What I don’t understand about is WHY is POTUS he sooooo against Federal legalization and it is unbelievable that the Safe Act hasn’t passed it seems to be just the Pawn in the chess game if it passed everything else would follow
    I truly hope that it at least passes so business can be business’s and Institutions and stock market can come to life.

    Senate Majority Leader Chuck Schumer (D-NY) announced at a press conference on Friday that he is aiming to formally file his much-anticipated bill to federally legalize marijuana in April. House Judiciary Committee Chairman Jerrold Nadler (D-NY), who also spoke, discussed progress on his separate legalization bill.
    Both top lawmakers detailed their efforts to end prohibition at an event in New York City, which also involved House Small Business Committee Chairwoman Nydia Velazquez (D-NY), New York lawmakers and advocates with the Drug Policy Alliance and other organizations.
    Friday proved to be an especially eventful day for federal cannabis policy, as the House earlier passed a large-scale bill that contains the bipartisan Secure and Fair Enforcement (SAFE) Banking Act. It’s the sixth time that reform has cleared the chamber in some form.
    “In the coming weeks, we’re ramping up our outreach—and we expect to introduce final legislation. Our goal is to do it in April,” Schumer said at the New York event. “Then we begin the nationwide push, spearheaded by New York, to get the federal law done. As majority leader, I can set priorities. This is a priority for me.”
    Advocates were encouraged when Schumer first disclosed details about his Cannabis Administration & Opportunity Act (CAOA), which he unveiled in draft form for public comment in July, but they’ve grown impatient with his repeated comments in the months since that a formal introduction was coming “soon.” Now he’s set a target timeline, and the leader also separately said in a meeting with activists that he expects committee hearings on the proposal shortly after it’s finally filed.
    “Right now, we’re taking those comments [on the draft version] and reaching out to Democratic and Republican senators,” Schumer said, adding that “we have some Republican support.” It’s not clear if he’s indicating that there will be GOP cosponsors on the bill itself or if he’s referencing general support from voters and some lawmakers across party lines for ending prohibition.
    “If any senators have other ideas that they want to add to the bill, as long as it keeps social and economic justice as the spearhead, we’re happy and willing to listen,” he said.
    Even if committee hearings start quickly following an April introduction, it seems highly unlikely that it will pass and make it to the president’s desk by the unofficial cannabis holiday 4/20, as Schumer said he wanted to see happen in a Senate floor speech delivered last April 20.
    Schumer, Nadler, several New York lawmakers also made the case at Friday’s event that while New York’s legalization law, which is actively being implemented, should serve as a model for the country, comprehensive equity will only be achievable once federal prohibition is lifted.
    “We want to renew the case for comprehensive marijuana reform that repairs the harm of the war on drugs at the federal level, using the great work that has been done here in New York as an example and way to lead,” Schumer said, adding that “just because we have a state law, the federal law still creates problems, and that’s why one of the many reasons we need to change it.”
    The majority leader’s office has been involved in negotiations with advocates and stakeholders, both on his legalization measure as well as the SAFE Banking Act, which he was blamed for blocking as part of a separate defense bill late last year.
    The leader and colleagues have insisted on passing comprehensive legalization first before banking—but the sponsor of the banking bill, Rep. Ed Perlmutter (D-CO), told Marijuana Moment on Friday that, after initiating conversations with the leader’s office, there may be a path forward to advance his legislation through both chambers with equity-focused amendments that Schumer wants to see.
    With respect to Schumer’s legalization bill, the Senate leader emphasized late last year that he wants to keep the “big boys” out of the marijuana industry in favor of creating opportunities for smaller operators when cannabis is federally legalized, and he said that his upcoming bill would accomplish that.
    “We don’t want the big boys to come in,” he said at the time. “After all the pain that’s been occurring in communities like the one you represent in Brooklyn, where I’m from—to have the big boys come in and make all the money makes no sense.”
    He’s made similar remarks in the past, stressing that his reform bill will take specific steps to restrict the ability of large alcohol and tobacco companies to overtake the industry.
    Nadler, meanwhile, discussed on Friday his Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would also end federal prohibition and promote social equity in the industry like CAOA. That bill passed the House in a historic first last session, and it cleared Nadler’s Judiciary Committee again in September.
    “The war on drugs—and particularly the criminalization of marijuana—has been a failure that has unleashed untold suffering on millions of Americans, especially within minority communities,” Nadler said. “I am proud to stand here with Senator Schumer, and with the many other legislators and advocates with us today, who are leading the way in reforming our laws and bringing justice to those who have been harmed by these unfair and destructive policies.”
    Also at the event, Velazquez talked about the importance of ending prohibition, as well as opening up Small Business Administration (SBA) resources for marijuana businesses.
    “Change will not happen, change will not come, unless we demand it,” the congresswoman said. “And because we have been demanding it, public opinion has changed dramatically. So it is time for government to act, particularly the federal government.”

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